International Trade And Border Transactions
What is an Importer-Exporter Code (IEC), and is it mandatory for all businesses involved in cross-border trade?
An Importer-Exporter Code (IEC) is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) of the Government of India. It is a unique identification number that is required by businesses involved in import and export trade in India.
Are there any restrictions on the import and export of certain goods and services in India?
Yes, there are a number of restrictions on the import and export of certain goods and services in India. These restrictions are imposed for a variety of reasons, including national security, public health, and environmental protection.
Can Indian businesses accept payments in foreign currencies for their exports?
Indian businesses can accept payments in foreign currencies for their exports, subject to certain restrictions. The business must have an IEC from the DGFT, comply with the FEMA, and ensure that the payments are made through a regulated channel.
What is the role of the Reserve Bank of India (RBI) in regulating cross-border transactions?
The Reserve Bank of India (RBI) regulates cross-border transactions in India to ensure the stability of the Indian financial system, protect consumers from fraud and financial crime, and facilitate the smooth flow of cross-border payments. The RBI does this through a variety of measures, including setting limits on the amount of money that can be transferred overseas, requiring banks and other financial institutions to follow strict AML and KYC procedures, and only allowing authorized entities to facilitate cross-border payments.
Are there any export promotion schemes available to Indian exporters?
Yes, India offers various export promotion schemes like the Merchandise Export from India Scheme (MEIS) and the Export Promotion Capital Goods (EPCG) Scheme to incentivize exports. The Government of India offers a number of export promotion schemes to help Indian exporters increase their exports and compete in the global market. These schemes provide financial and non-financial assistance, such as duty drawback, import of capital goods at zero duty, concessional rate of interest on export credit, export counselling and training, market research and intelligence, export infrastructure development, and export promotion campaigns.
Can Indian businesses establish branch offices or subsidiaries abroad?
Yes, Indian businesses can establish branch offices, subsidiaries, or joint ventures abroad. The Indian Companies Act, 2013 allows Indian companies to establish branches or subsidiaries in any country outside India. However, the company must obtain the prior approval of the Reserve Bank of India (RBI) before establishing a branch or subsidiary abroad. The RBI’s approval is required to ensure that the establishment of the branch or subsidiary does not adversely affect the financial stability of India. Once the RBI’s approval is obtained, the company can proceed with the establishment of the branch or subsidiary. The company must also comply with the laws of the country in which the branch or subsidiary will be established
What is an Advance Authorization, and how does it facilitate international trade?
An Advance Authorization (AA) is a type of duty exemption scheme introduced by the Government of India under the Foreign Trade Policy 2022-2023. Under this scheme, exemption from the payment of import duties is given to raw materials/inputs required for the manufacture of export products. This means that exporters can import raw materials/inputs at zero customs duty for the production of export products.
Can cross-border transactions be conducted in foreign currency within India?
Cross-border transactions in foreign currency can be conducted within India, but only through authorized dealers (ADs). ADs are banks and other financial institutions that have been licensed by the Reserve Bank of India (RBI) to deal in foreign currency.
Are there any specific regulations for e-commerce exports and imports in India?
Yes, there are specific regulations for e-commerce exports and imports in India. These regulations are designed to protect consumers and ensure that e-commerce transactions are conducted in a fair and transparent manner. Businesses that are involved in e-commerce exports and imports in India must comply with all of the relevant laws and regulations. Failure to do so could result in penalties, including fines and imprisonment.
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